Business, international

FIs DECIDE TO BLOCK ACC PREF ISSUE TO TATAS

Article Abstract:

The financial institutions (FIs), which hold 20.63 percent stake in the Associated Cement Companies Ltd (ACC), have asked the ACC to increase the size of the rights issue (Rs55 per share) instead of making preferential allotment of shares to Tatas at Rs110 per share. Insurance companies, banks and mutual funds, which hold 10 percent stake in ACC, may also decide against the preferential allotment of shares to Tatas. The preferential allotment would have increased the stake of Tatas from 13.03 percent to 20 percent in ACC. The FIs have pointed out that rights offer was made at Rs400 per share three years ago and the preferential offer price at Rs110 per share to Tatas is very low. FIs have not taken Tatas as promoter group. ACC proposed to offer preferential shares to Tatas and rights offer to mobilise funds for its expansion programme. (rk)

Comment:

The financial institutions (FIs), which hold 20.63 percent stake in the Associated Cement Companies Ltd (ACC), have asked the ACC to increase the size of the rights issue (Rs55 per share) instead of making preferential allotment of shares to Tatas at Rs110 per share.

TATAS WANT OFFER MADE TO ALL SHAREHOLDERS

Article Abstract:

Tata group has suggested that the preferential allotment of Associated Cement Companies Ltd (ACC) shares be offered to all the shareholders instead of restricting it to its group alone. It has asked ACC to allot 50 warrants each to the 1.35 lakh shareholders. Tata will pick up the shares if the issue is under- subscribed. ACC has informed the financial institutions (FIs) of the Tata's proposal. Tata officials also met the FIs. Earlier, ACC had proposed to allot preferential shares to Tatas, but financial institutions opposed the move. (rk)

FIs FORCE ACC HAND, PREF OFFER TO TATAS WITHDRAWN

Article Abstract:

Financial institutions (FIs) have forced the directors of Associated Cement Companies Ltd (ACC) to withdraw the offer of preferential allotment of shares or warrants to the Tata group. ACC has also abandoned the counter-proposal of a preferential issue of warrants to all shareholders as it was not favoured by the FIs. The decision to withdraw the preferential offers was announced at the company's extraordinary general meeting held on January 7, 1999. (khr)

Comment:

Financial institutions (FIs) have forced the directors of Associated Cement Companies Ltd (ACC) to withdraw the offer of preferential allotment of shares or warrants to the Tata group.